North Dakota Bankruptcy Laws should be known by every resident of the state of North Dakota. No matter how we try to take control of our lives some things happen unexpectedly; it may be that the company you’re working for suddenly closes down for business or a family member is hospitalized. You could have kept up with your bills if not for these incidents.
Now, you’re way behind your scheduled payments and the credit card companies are calling you day and night to remind of your obligations. The idea of filing for bankruptcy protection suddenly comes up and then you decide you’ll go for it. Before you take the ultimate plunge, know enough bankruptcy laws. If you are a resident of North Dakota, be sure to familiarize North Dakota bankruptcy laws because state laws have specific or unique rules of implementation aside from the federal rules imposed.
Why do you want to file for bankruptcy? Is it because you think you can’t pay your bills? The legal system of North Dakota, as well as the federal system provided for bankruptcy as a last resort. This is one of the leading reasons why the federal and state laws impose upon every debtor the responsibility to attend a comprehensive credit counseling program from a state-accredited organization. This should be done 6 months prior to the formal application of bankruptcy protection. The goal of the said counseling is each to teach debtors the value of money, how to handle debts, and develop a budget within the monthly income. This way, even if the debtor pursues bankruptcy, it will be the first and the last time he’ll declare bankruptcy.
One of the most important things you need to consider before declaring bankruptcy is the type of bankruptcy protection program you want to enroll in. There are Chapter 7 and Chapter 13. Of the two, Chapter 7 is more popular among debtors. Most of the debtors have misconstrued ideas about Chapter 7. You may start anew when you file for this bankruptcy type, but the qualifications and the requirements are so complex to an average citizen that the only option left for them is to hire the services of a lawyer who specializes in bankruptcy cases. For starters, a mountain of paperwork should be submitted to the court, including your certification from the counseling program and your filing fee, which would cost hundreds. Granting that all the paper works are correct, you will be assigned to a trustee who will help liquidate your dischargeable debts.
For debtors who are earning a regular monthly income and those who did not pass the Chapter 7 qualifications, the lawyer may recommend a Chapter 13 bankruptcy protection program. This type of bankruptcy won’t take hold of your assets because you will be given the chance to pay for your debts through the repayment plan approved by the court and supervised by the trustee. It is your responsibility to remit your monthly funds to the trustee who will be tasked with distributing the money to the creditors.
During the liquidation of your debts, certain assets called non-exemptions are sold to pay the creditors. However, North Dakota bankruptcy laws have a specific list of assets, called exemptions that are to be safeguarded from creditors. Here’s a partial list of exemptions:
• Your home worth $100,000;
• In lieu of your home, a $7,500 exemption;
• A single vehicle worth $2,950;
• Clothing worth $5,000;
• Personal property worth $2,500 for an individual, $5,000 for a household;
• Tools of trade worth $1,500; and
• Personal benefits like social security, alimony, child support, and public compensation.
The things discussed here are just some of the essential things you need to know. If you want to continue filing for bankruptcy, the adage knowledge is power really applies.